Is the Market Slowing? Cypress to The Woodlands, Northwest Houston Real Estate

You’ve probably noticed it’s taking longer for homes to sell. You might’ve also seen more “For Sale” signs than usual around your neighbourhood. And if you're thinking about buying or selling in Cypress, Tomball, Magnolia, Montgomery, or The Woodlands, it’s fair to ask:

Is the market slowing down? Is now a good time to make a move — or should you wait?

The truth is, the Northwest Houston market isn’t leaning clearly in favour of buyers or sellers right now. Inventory is up across all five cities, while sales have either flattened or dropped. Prices? Some are rising. Others are softening. And mortgage rates hovering around 6.3% continue to pressure affordability.

This update gives you a clear, straightforward view of what’s happening — and what it means for your next move. Whether you’re buying, selling, or simply watching the market, here’s what you need to know.

The Big Picture: Signs of a Cooling, Not a Crash

Across all five focus cities, active listings rose year-over-year — some sharply. Montgomery saw a 44% increase in inventory, pushing its months of inventory (MOI) to 7.5 — the highest in the region. Even Cypress and The Woodlands, with more modest listing growth, saw a noticeable uptick.

Sales volumes mostly slipped. Cypress and The Woodlands held steady, but Tomball and Magnolia saw double-digit pullbacks (down 29.7% and 21.3%, respectively). These declines line up with broader market signals: higher mortgage rates and more selection are giving buyers time to pause — and room to negotiate.

Prices are mixed. Tomball (+6.2%) and Montgomery (+5.6%) posted solid price gains. The Woodlands (-3.5%) and Magnolia (-1.5%) softened. These shifts are less about a market crash and more about balance — where only well-positioned homes are commanding top dollar.

Meanwhile, Days on Market (DOM) rose across the board. Cypress hit 77 days (+28%), and The Woodlands jumped to 56 days (+75%). That doesn’t mean homes aren’t selling — it just means buyers aren’t rushing.

What’s Contributing to the Shift?

• Rates remain high. According to Freddie Mac, mortgage rates hovered around 6.26–6.34% in late September. That’s keeping monthly payments elevated and making buyers more cautious.

• More homes are hitting the market. The Texas Real Estate Research Center shows continued new construction across the metro, especially in fast-growing suburbs.

• Local growth is still strong. In Cypress, for example, the new Houston Methodist hospital is opening soon — signalling continued investment and demand. (Houston Chronicle)

City-by-City Real Estate Breakdown

Tomball

• Sales: 130 (↓29.7% YoY)

• Avg Price: $463,730 (↑6.2%)

• Active Listings: 593 (↑15.4%)

• DOM: 83 (↑19%)

Buyers pulled back, but sellers held firm on price. Most likely, move-in-ready homes are still fetching premiums while others sit longer.

Magnolia

• Sales: 188 (↓21.3%)

• Avg Price: $427,963 (↓1.5%)

• Active Listings: 913 (↑24.2%)

• DOM: 89 (↑17%)

Inventory jumped the most here. Buyers now have leverage — and they’re using it to negotiate price and terms.

Montgomery

• Sales: 138 (↓1.4%)

• Avg Price: $591,920 (↑5.6%)

• Active Listings: 1,030 (↑44.1%)

• DOM: 92 (↑2%)

Even with sky-high inventory (7.5 MOI), prices rose. This reflects strength in certain new-build or premium segments — despite slower absorption.

Cypress

• Sales: 274 (↓0.4%)

• Avg Price: $491,833 (↑1.8%)

• Active Listings: 1,215 (↑10.2%)

• DOM: 77 (↑28%)

This is the steadiest submarket. Price and sales stayed flat, buoyed by continued household growth and new infrastructure like the Houston Methodist hospital.

The Woodlands

• Sales: 88 (↓1%)

• Avg Price: $742,990 (↓3.5%)

• Active Listings: 291 (↑35.3%)

• DOM: 56 (↑75%)

Luxury market sensitivity to rates is showing. With more listings and longer DOM, sellers are adjusting price expectations — even though the local job market remains strong.

What This Means for You

If You’re Selling:

Buyers are cautious. Pricing discipline matters more than ever. Move-in-ready homes that are well-priced still sell — but overpricing stretches your DOM and invites low offers, especially in Magnolia and Montgomery.

If You’re Buying:

You’ve got more choices, longer DOM, and more negotiating power — especially on credits, repairs, and closing timelines. Cypress is stable, but Magnolia and Montgomery offer the best leverage right now.

If You’re an Investor or Builder:

Keep a close eye on absorption rates vs. incoming supply. TRERC reports ongoing permitting across Houston. Elevated inventory in some pockets could linger into year-end, even as population growth underpins long-term demand.

Need a Clearer Read on Your Market?

If you’re not sure what this update means for your specific goals — buying, selling, investing — don’t guess. The market is changing fast, but smart moves are still on the table with the right local insight.

Let’s talk strategy. Reach out today for a personalised read on your area, your home, or your next step.